GM turns down $2 billion

General Motors has said it will not need the $2 billion (£1.4bn) of US government funding that it had previously requested for March.

GM says that the turnaround has occured because it had accelerated its efforts to cut costs in recent months, as well as delaying planned spending in January and February.

The company has already received $13.4bn (£9.5bn) in aid, and has requested another $16.6bn (£11.8bn). In December the firm warned it could run out of cash in a matter of weeks if money were not made available.

In a statement, GM said the $2bn requested for March would not be needed "at this time".

However, it did not indicate whether it would need the funds at a later date, or if it planned to change its request for the $16.6bn asked for last month.

"GM will remain in regular contact with the Presidential Task Force on the auto industry on the status of GM’s restructuring actions, its liquidity position, timing of future funding requests, and other relevant topics of mutual concern," said Ray Young, GM vice-president and chief financial officer.